You have two options for how to spend the afternoon. You can either go see a movie with your roommate or work as a tutor for the Math Department. From experience, you know that going to see a movie gives you $20 worth of enjoyment, and with your student discount, a movie ticket only costs $12. If you spend the afternoon working as a math tutor, you will get paid $45. On a typical day, you wouldn't be willing to spend the afternoon working as a math tutor for less than $35. What is your opportunity cost of seeing a movie this afternoon?
A. $22
B. $8
C. $57
D. $12
Answer: D
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The demand curve for the output of a perfectly competitive firm is
a. perfectly inelastic b. perfectly elastic c. unit elastic d. downward sloping e. nonlinear
According the graph shown, the firm's most efficient scale of operation is to produce quantity:
This graph represents the cost and revenue curves of a firm in a perfectly competitive market.
A. Q1.
B. Q2.
C. Q3.
D. Any quantity as long as P1 is charged.
If demand decreases and supply increases in a market that is initially in equilibrium, then _____
a. the equilibrium price will always increase. b. the equilibrium quantity will always decrease. c. the equilibrium price will remain unchanged. d. the equilibrium quantity will remain unchanged. e. the equilibrium price will always decrease.
Which of the following is true about poor populations?
A. The poor are less likely to be children than the elderly. B. There are more poor whites than poor blacks. C. The poor are more likely to have graduated from high school. D. The poor are disproportionately white.